Other than flipping or buying a home in foreclosure, is there any way to use real estate as an investment? Yes, there is. If you are willing to make a long-term investment, the traditional methods of acquiring real estate still work. Despite the buyer’s or seller’s market phase, real estate does appreciate in value over [...]
Buying a foreclosed home from a lender may also be a disappoint-ment. Because of the number of mortgage loans for 100% of the property cost that were written in the seller’s market, many of the foreclosed mortgages are for more than the property is worth. Since the lender wants to get as much money out [...]
The real estate auction goes very fast, and unless you are knowledgeable about how the auction works, it may appear that the winner has been prearranged. Most times the bid for the real estate must be accompanied by a sizable earnest money deposit. If you are the successful bidder you will be expected to be [...]
There are two ways to purchase a foreclosed home. One is at an auction where the homeowner and lenders may also be bidding on the property, and the other is from a lender or organization that owns the home. Each method has its own risks.
Since there is such a glut of foreclosed homes on the market now, would putting money into foreclosed homes be a good investment? Maybe, but there is no guarantee when dealing with foreclosed homes that the expenses associated with the home will not exceed any profit that you may obtain when reselling the property.
A financial person sent me an invitation to a seminar where he will teach me to be successful in real estate investment. Is this legitimate? Yes and no. While it is legal to hold a seminar that teaches about investing, do not expect that you will be as successful or rich as the person who [...]
Local real estate agents are a great source of information. You can also look at newspaper listings, foreclosure sales, probate sales, or just drive around an area to see properties that have been on the market for awhile.
Look for that motivated seller. A motivated seller is one who really needs to sell fast because of job loss, death in the family, divorce, transfer, or because he or she has already purchased a home and is paying two mortgages. Try to get the property for a price that is at least 20% below [...]
In a buyer’s market and when home sales are down, flipping may not be the most profitable investment. In this type of market, you may be able to purchase a home at a low price, but you will have prob-lems when selling the home for an amount that covers your expenses, your time, and gives [...]
Flipping is a term used for buying a home at a low cost, rehabbing it, and then selling the home for a profit.
My lender said that it offers some standard programs to prevent foreclosure. What are these standard programs? Without speaking with the lender, it is hard to know what it considers to be standard programs. The more common ones are: Forbearance. During a temporary time, like an illness or a job loss, the lender suspends payments. [...]
Are there any organizations that can help a person who got stuck with a subprime loan and will probably end up in foreclosure? Yes there are, and every day more people are stepping up to provide assistance. Your state and your city may already have a financial assis-tance program in place. The City of Chicago [...]
If your problem is with making payments for all the other bills, you may want to consider a debt consolidation loan that will pay off your bills. The monthly payment for this type of loan may be less than the total amount of payments you made for all the high interest charge accounts. If financial [...]
You begin when you are looking for a home. Start by accurately assessing what you can spend on a mortgage and what you are willing to give up for that mortgage. Do not rely on potential future salary increases. If you do get huge salary increases, then you can buy a bigger home later. Use [...]
Maybe. First, you will need to improve your credit qualifications by not taking on debt you cannot repay and making outstanding payments on time. Time is the issue here. If you file for bankruptcy you will need to wait seven years to file another bankruptcy, but the bankruptcy will remain on your credit report for [...]
Predatory lenders are now targeting those with subprime mortgages to offer them what is being called a rescue loan. The lender looks for those who have some equity built up in their homes, but are now having difficulty making those high monthly mortgage payments. The scam is horrible. The homeowner gets behind in mortgage payments [...]
Mortgage payments are considered late if the lender gets the payment after the due date set in the mortgage documents. Usually the lender gives the borrower a fourteen-day grace period; however, on the fifteenth day, the lender assesses a late payment fee. Nowadays, lenders will begin calling the borrower after twenty or more days without [...]
I keep hearing that there is a tremendous increase in foreclosures. What are they and how did we get here? A foreclosure is a legal procedure that is initiated by a mortgage lender because the mortgage is considered in default. It is usually not a proce-dure done lightly, with the exception of some predatory lenders [...]
The best way not to worry is to hire a real estate attorney to handle the purchase for you. Without an attorney, you will need to order a professional survey, have an inspection of the home completed, and order the title insurance search. Especially in a for sale by owner trans-action, the buyer needs to [...]
If you are represented by an attorney, that attorney may be able to place the funds in an escrow account or hire an escrow officer to handle the funds. Title insurance companies may also be able to act as an escrow agent in this transaction. Do not give your earnest money directly to the seller, [...]